Study #: 3626 | Published: 05/2018 | Pages: 204 | Individual User License: US$ 4,900

This study analyzes US demand for insulation products used principally for their thermal performance in residential buildings by material, housing type, project type, area of building, and region.

Materials broken out include:

  • fiberglass
  • foamed plastics
  • cellulose
  • mineral wool
  • other materials (e.g., reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)

Materials are also broken out by product form (batts, blankets, rigid boards, loose fill, blow-in, and spray-applied) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).

The housing types analyzed are:

  • single-family
  • multifamily
  • manufactured housing

Project types include both new housing construction and retrofit.

Demand by area of building encompasses the following:

  • attic and roof
  • exterior wall
  • other areas (e.g., floor joists, basements, crawlspaces, interior walls, garages, and all other insulation applications)

Demand for insulation is also broken out for the following US geographic regions and subregions:

  • Northeast (Middle Atlantic and New England)
  • Midwest (East North Central and West North Central)
  • South (South Atlantic, East South Central, and West South Central)
  • West (Mountain and Pacific)

Excluded from the scope of the study are insulation used primarily for its acoustic properties and insulation used in and around HVAC equipment, including duct work.

Historical data for 2007, 2012, and 2017 and forecasts to 2022 are presented in current dollars (which are not adjusted to account for inflation). Historical and forecast data are also presented in volume terms by the following measures: pounds, square feet R-1 value, and square feet. In pounds and square feet R-1 measures, reflective insulation and radiant barriers are excluded.


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Residential Insulation in the US

Residential Insulation Scope

This study analyzes US demand for insulation products used principally for their thermal performance in residential buildings by material, housing type, project type, area of building, and region. This industry study presents historical demand data (2007, 2012, and 2017) and forecasts for 2022 by material, product type, housing type, area of building, and by region. 

Demand is provided in volume terms by the following measures: pounds, square feet R-1 value, and square feet. The study also evaluates company market share and provides analysis on industry competitors including American Rockwool, Applegate Insulation, Atlas Roofing, BASF, Carlisle, CertainTeed, Covestro, DowDuPont, Fiberlite Technologies, Huntsman, Johns Manville, Kingspan, Knauf Insulation, Nu-Wool, Owens Corning, ROCKWOOL, Sealed Air, and US Greenfiber.

Data from the US Census Bureau were consulted in the preparation of this study and a list of related codes is presented here for informational purposes. However, these codes may not include all products covered in this report or may exclude some products of interest and the data have thus been adjusted accordingly.

Residential Insulation in the United States

Residential Insulation Methodology

Most Freedonia studies utilize a similar methodology: historical data are collected from various industry, government, and other relevant sources, and forecasts are developed based on trends in key indicators, ratio and regression analysis, and interviews with industry participants.

Information and data on residential insulation were obtained from numerous primary and secondary sources, including industry participants, government agencies, trade associations, online databases, company annual reports and investor presentations, and other Freedonia Group studies.

Once overall insulation demand was calculated, estimates were developed for each housing type and area of building based on the intensity of insulation use in each segment. Demand estimates for specific materials were estimated based on available industry data and primary interviews with industry experts.

Product demand in pounds was calculated using R-1 conversion factors – which were gleaned from published industry data and product specification sheets – for each material and product type.

Once demand in terms of weight was estimated, demand in value terms was calculated based on average product prices. Pricing data was obtained from RSMeans and company websites. These prices were then discounted based on internal estimates of both retail and distributor markups to calculate demand in dollar terms at the manufacturers’ level. Demand in square feet is estimated in a similar fashion – accounting for pricing trends and internal estimates of material pricing markups. Additionally, adjustments were made based on a subregional analysis of:

  • the number of floors per housing unit
  • average housing unit size
  • the number of finished basements in single-family housing units
  • housing stock by type
  • age of housing stock

Residential Insulation Coverage

Materials broken out include:

  • fiberglass
  • foamed plastics
  • cellulose
  • mineral wool
  • other materials (e.g., reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)

Materials are also broken out by product form (batts, blankets, rigid boards, loose fill, blow-in, and spray-applied) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).

The housing types analyzed are:

  • single-family
  • multifamily
  • manufactured housing

Project types include both new housing construction and retrofit.

Demand by area of building encompasses the following:

  • attic and roof
  • exterior wall
  • other areas (e.g., floor joists, basements, crawlspaces, interior walls, garages, and all other insulation applications)

Demand for insulation is also broken out for the following US geographic regions and subregions:

  • Northeast (Middle Atlantic and New England)
  • Midwest (East North Central and West North Central)
  • South (South Atlantic, East South Central, and West South Central)
  • West (Mountain and Pacific)

Residential Insulation Regional Analysis

How Will the Economy Impact Demand for Residential Insulation?  

The residential insulation outlook is dependent upon a number of macroeconomic assumptions, including environmental and regulatory issues. This study will address what these assumptions are as well as their overall importance in the market. 

Following double-digit declines in demand during the 2007-2009 recessionary period, residential insulation demand increased in 2010 as residential building construction spending rose for the first time since 2006. Demand dipped once again in 2011 due to a slight decline in single-family housing starts, but rose sharply in 2012 in tandem with a 28% increase in conventional housing starts.

In 2017, the residential insulation market surpassed pre-recession levels, driven by annual gains in residential building construction of 13% during the 2012-2017 period.

R-1 Value

Through 2022, demand for residential insulation is forecast to advance 2.8% per annum of R-1 value. These gains are supported by: 

  • Building codes requiring insulation with higher R-values, particularly in subregions with harsh climates.
  • Growth in the retrofit market, as rising consumer awareness of the energy efficiency benefits of insulation will prompt many homebuilders and DIYers to install high R-value insulation in attics and exterior walls.
  • The incorporation of more insulation per unit built to better protect homes against heat transfer and (in many areas) to form the required air barriers to minimize the incidence of leaks.
  • Advances in fiberglass insulation demand, as the use of thicker, higher R-value batts and blankets is increasing in exterior walls and attic.

Insulation Pricing Trends

The rise in insulation prices will be spurred in party by increases in construction activity, which will boost demand for building materials and lead to price hikes. Price advances will be restrained by strong intermaterial competition.

If manufacturers of one product – such as fiberglass insulation – raise prices too much, producers of competitive insulation types – such as cellulose insulation – can offer their products at a price advantage, limiting overall price gains.

Environmental & Regulatory Issues 

Government legislation and regulations not only affect demand for insulation, but also the development, transport, sale, and disposal of these materials. This study will outline environmental concerns facing the industry today, such as:

  • Building Codes
  • Green Building
  • Indoor Air Quality
  • Health & Safety Issues

Residential Insulation Market Overview

The residential insulation market enjoyed healthy gains during the 2012-2017 period, bolstered by increases in residential building construction activity. Through 2022, demand for insulation in the residential market is forecast to advance 3.9% per annum. SprayFoam.com cited The Freedonia Group, saying, "Foamed plastics are projected to be the fastest growing material in the residential insulation market through 2022. The materials’ ability to fully seal gaps and air leaks will support demand gains as recent IECC measures call for significant improvements in the reduction of air leaks in single-family and multifamily housing."

Residential Insulation Demand Summary

Gains will be driven by:

  • healthy growth in single-family housing starts
  • the installation of more insulation per housing unit to comply with stricter International Energy Conservation Codes (IECC adopted by a number of state and local building regulators
  • efforts to upgrade insulation in existing houses, as homeowners seek to reduce utility bills by improving energy efficiency
  • increasing interest in green building practices

This Study will answer questions like: 

  • What is the fastest growing material in the residential insulation market? 
  • How will eco-friendly technologies change the future of the insulation industry?
  • Which materials are the most cost-effective? 
  • How does the retrofit market provide demand opportunities for insulation materials? 
  • Where are the best regional opportunities in the residential insulation market? 

Table of Contents

EXECUTIVE SUMMARY

OVERVIEW

Key Findings

Historical Market Trends

Residential Insulation Product Forecasts

R-1 Value

Pounds & Square Feet

Market Value

Pricing Trends

Environmental & Regulatory Issues

Overview

Building Codes & Green Building

Indoor Air Quality & Health & Safety Issues

Climate Zones & R-Values

FIBERGLASS

Key Findings

Definition & Scope

Fiberglass Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product Trends (Batts, Blankets, Loose Fill, & Rigid Boards)

New Versus Retrofit Projects

Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)

Fiberglass Insulation by Area of Residential Building

Market Share

FOAMED PLASTIC

Key Findings

Definition & Scope

Foamed Plastic Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product Trends

Rigid Urethane - Rigid Board Versus Sprayed-On Product Forms

Rigid Urethane Boards

Sprayed-On Urethane - Open-Cell Versus Closed-Cell

Polystyrene - Expanded Polystyrene (EPS) Versus Extruded Polystyrene (XPS)

Impact of Growing Structural Insulated Panels (SIPs) Market

New Versus Retrofit Projects

Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)

Foamed Plastic Insulation by Area of Residential Building

Market Share

CELLULOSE

Key Findings

Definition & Scope

Cellulose Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product Trends (Blow-In Versus Spray-Applied)

New Versus Retrofit Projects

Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)

Cellulose Insulation by Area of Residential Building

Market Share

MINERAL WOOL

Key Findings

Definition & Scope

Mineral Wool Market Size & Forecasts by Value, Volume, & Area

Material Advantages & Disadvantages

Product (Batts & Blankets, Loose Fill, & Other Forms) & Material (Rock Wool & Slag Wool) Trends

New Versus Retrofit Projects

Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing

Mineral Wool Insulation by Area of Residential Building

Market Share

OTHER MATERIALS

Key Findings

Other Insulation Materials Market Size & Forecasts

Overview

Reflective Insulation & Radiant Barriers

Perlite & Vermiculite

All Other (Wool, Cork, Cotton, Recycled Denim, Hemp, & All Other Materials)

HOUSING TYPE

Key Findings

Outlook for Insulation by Housing Type

Single-Family

Multifamily

Manufactured Housing

NEW & RETROFIT INSULATION MARKETS

Key Findings

Outlook for Insulation by Project Type

New Housing

Retrofit Projects

AREA OF RESIDENTIAL BUILDING INSULATION TRENDS

Key Findings

Outlook for Insulation by Area of Residential Building

Attic & Roof

Exterior Walls

Other

REGIONS

Key Findings

Regional Demand Forecasts

Northeast

Northeast: Overview

Northeast: Demand Forecast

Midwest

Midwest: Overview

Midwest: Demand Forecast

South

South: Overview

South: Demand Forecast

West

West: Overview

West: Demand Forecast

INDUSTRY STRUCTURE

Key Findings & Industry Composition

Market Share

Competitive Strategies

Product Differentiation

Intermaterial Competition

New Product Development

Marketing

Distribution

Acquisitions & Divestitures

List of Industry Participants

APPENDIX

Scope

Methodology

Sources

Associations & Agencies

Related Freedonia Group Studies

Definitions

Abbreviations

Macroeconomic Assumptions

Economic Environment

Demographics

Residential Building Construction

Residential Improvements & Repairs

Housing Starts

Housing Stock

Consumer Spending

Consumer Financing


List of Tables

OVERVIEW

Table 2-1 | Residential Insulation Market, 2007 - 2017

Table 2-2 | Residential Insulation Demand by Material, 2007 - 2022 (billion square feet R-1)

Table 2-3 | Residential Insulation Volume & Area Demand by Material, 2007 - 2022

Table 2-4 | Residential Insulation Demand by Material, 2007 - 2022 (million dollars)

Table 2-5 | Average Insulation Prices by Material, 2007 - 2022

Table 2-6 | US Residential Insulation Market: Environmental & Regulatory Issues

FIBERGLASS

Table 3-1 | Residential Fiberglass Insulation Demand, 2007 - 2022

Table 3-2 | Fiberglass Insulation Advantages & Disadvantages

Table 3-3 | Residential Fiberglass Insulation Demand by Product Form, 2007 - 2022

Table 3-4 | Residential Fiberglass Insulation Demand by Project Type, 2007 - 2022

Table 3-5 | Residential Fiberglass Insulation Demand by Housing Type, 2007 - 2022

Table 3-6 | Fiberglass Insulation Demand by Area of Residential Building, 2007 - 2022

FOAMED PLASTIC

Table 4-1 | Residential Foamed Plastic Insulation Demand, 2007 - 2022

Table 4-2 | Residential Foamed Plastic Insulation Demand Drivers & Restraints

Table 4-3 | Foamed Plastic Materials Advantages & Disadvantages

Table 4-4 | Residential Rigid Urethane Insulation Demand, 2007 - 2022

Table 4-5 | Residential Rigid Urethane Board Insulation Demand, 2007 - 2022

Table 4-6 | Residential Sprayed-On Urethane Insulation Demand by Type (Open-Cell & Closed-Cell), 2007 - 2022

Table 4-7 | Polystyrene: Expanded Polystyrene & Extruded Polystyrene Residential Insulation Demand, 2007 - 2022

Table 4-8 | Residential Foamed Plastic Insulation Demand by Project Type, 2007 - 2022

Table 4-9 | Residential Foamed Plastic Insulation Demand by Housing Type, 2007 - 2022

Table 4-10 | Foamed Plastic Insulation Demand by Area of Residential Building, 2007 - 2022

CELLULOSE

Table 5-1 | Residential Cellulose Insulation Demand, 2007 - 2022

Table 5-2 | Residential Cellulose Insulation Demand Drivers & Restraints

Table 5-3 | Cellulose Material Advantages & Disadvantages

Table 5-4 | Residential Cellulose Insulation Demand by Product Form, 2007 - 2022

Table 5-5 | Residential Cellulose Insulation Demand by Project Type, 2007 - 2022

Table 5-6 | Residential Cellulose Insulation Demand by Housing Type, 2007 - 2022

Table 5-7 | Cellulose Insulation Demand by Area of Residential Building, 2007 - 2022

MINERAL WOOL

Table 6-1 | Residential Mineral Wool Insulation Demand, 2007 - 2022

Table 6-2 | Residential Mineral Wool Insulation Demand Drivers & Restraints

Table 6-3 | Mineral Wool Material Advantages & Disadvantages

Table 6-4 | Residential Mineral Wool Insulation Demand by Product Form & Material, 2007 - 2022

Table 6-5 | Residential Mineral Wool Insulation Demand by Project Type, 2007 - 2022

Table 6-6 | Residential Mineral Wool Insulation Demand by Housing Type, 2007 - 2022

Table 6-7 | Residential Mineral Wool Insulation Demand by Area of Residential Building, 2007 - 2022

OTHER MATERIALS

Table 7-1 | Other Residential Insulation Material Demand, 2007 - 2022

Table 7-2 | Residential Reflective Insulation & Radiant Barrier Demand, 2007 - 2022

Table 7-3 | Residential Perlite & Vermiculite Insulation Demand, 2007 - 2022

Table 7-4 | All Other Residential Insulation Materials Demand, 2007 - 2022

HOUSING TYPE

Table 8-1 | Residential Insulation Demand by Housing Type, 2007 - 2022

Table 8-2 | Single-Family Housing Insulation Demand by Project Type, 2007 - 2022

Table 8-3 | Multifamily Housing Insulation Demand by Project Type, 2007 - 2022

Table 8-4 | Manufactured Housing Insulation Demand by Project Type, 2007 - 2022

NEW & RETROFIT INSULATION MARKETS

Table 9-1 | Residential Insulation Demand by Project Type, 2007 - 2022

Table 9-2 | New Housing Insulation Demand, 2007 - 2022

Table 9-3 | Residential Retrofit Insulation Demand, 2007 - 2022

AREA OF RESIDENTIAL BUILDING INSULATION TRENDS

Table 10-1 | Insulation Demand by Area of Residential Building, 2007 - 2022

Table 10-2 | Residential Insulation Demand in Attics & Roofs, 2007 - 2022

Table 10-3 | Residential Insulation Demand in Exterior Walls, 2007 - 2022

Table 10-4 | Residential Insulation Demand in Other Building Areas, 2007 - 2022

REGIONS

Table 11-1 | Residential Insulation Demand by Region, 2007 - 2022

Table 11-2 | Northeast Residential Insulation Demand, 2007 - 2022 (million dollars)

Table 11-3 | Midwest Residential Insulation Demand, 2007 - 2022 (million dollars)

Table 11-4 | South Residential Insulation Demand, 2007 - 2022 (million dollars)

Table 11-5 | West Residential Insulation Demand, 2007 - 2022 (million dollars)

INDUSTRY STRUCTURE

Table 12-1 | US Residential Insulation Product Sales for Selected Companies, 2017 (million dollars)

Table 12-2 | Selected Acquisitions & Divestitures

APPENDIX

Table 13-1 | Study Scope: US Geographic Regions & Subregions

Table 13-2 | Relevant Industry Codes

Table 13-3 | Relevant HS/HTS Codes

Table 13-4 | Insulation R-Values by Material

Table 13-5 | Abbreviations Used in Study

Table 13-6 | Macroeconomic Indicators, 2007 - 2022 (billion 2009 dollars)

Table 13-7 | Population & Households, 2007 - 2022 (million persons)

Table 13-8 | Residential Building Construction Expenditures, 2007 - 2022 (billion dollars)

Table 13-9 | Residential Improvement & Repair Expenditures, 2007 - 2022 (billion dollars)

Table 13-10 | New Housing Indicators, 2007 - 2022

Table 13-11 | Housing Stock by Type, 2007 - 2022 (million units)

Table 13-12 | Personal Consumption Expenditures, 2007 - 2022 (billion dollars)

Table 13-13 | Consumer Financing Environment, 2007 - 2017


List of Figures

EXECUTIVE SUMMARY

Figure 1-1 | Key Trends in US Residential Insulation Market, 2017 - 2022

OVERVIEW

Figure 2-1 | US Residential Insulation Market Overview

Figure 2-2 | Residential Insulation Market, 2007 - 2017 (million dollars)

Figure 2-3 | Residential Insulation Volume & Area Demand Shares, 2017

Figure 2-4 | Continental US Climate Zone Map & Suggested R-Values

FIBERGLASS

Figure 3-1 | Key Trends in the US Residential Fiberglass Insulation Market

Figure 3-2 | Residential Fiberglass Insulation Value, Volume, & Area Demand Shares, 2007 - 2022

Figure 3-3 | Residential Fiberglass Insulation Volume Demand by Product Form, 2012 - 2022 (million pounds)

Figure 3-4 | New Housing Versus Retrofit Fiberglass Demand Volatility, 2007 - 2017

Figure 3-5 | Single-Family Demand Share of Total Residential Fiberglass Insulation Market, 2007 - 2022 (million dollars)

Figure 3-6 | Fiberglass Insulation Volume Demand by Area of Residential Building, 2017 (billion pounds)

Figure 3-7 | Residential Fiberglass Insulation Market Share, 2017 (billion dollars)

FOAMED PLASTIC

Figure 4-1 | Key Trends in the US Residential Foamed Plastic Insulation Market

Figure 4-2 | Open-Cell Versus Closed-Cell Value Demand Shares, 2007 - 2022 (million dollars)

Figure 4-3 | EPS Versus XPS Residential Insulation Value Demand Shares, 2007 - 2022 (million dollars)

Figure 4-4 | Residential Foamed Plastic Insulation Market Share, 2017 (million dollars)

CELLULOSE

Figure 5-1 | Key Trends in the US Residential Cellulose Insulation Market

Figure 5-2 | Blow-In Versus Spray-Applied Cellulose Insulation Demand Shares, 2007 - 2022 (million dollars)

Figure 5-3 | New Housing Cellulose Insulation Demand Versus Single-Family Housing Starts, 2007 - 2022

Figure 5-4 | Residential Cellulose Insulation Market Share, 2017 (million dollars)

MINERAL WOOL

Figure 6-1 | Key Trends in the US Residential Mineral Wool Insulation Market

Figure 6-2 | Residential Mineral Wool Insulation Value & Volume Demand Shares by Product Form, 2017

Figure 6-3 | Residential Mineral Wool Insulation Market Share, 2017 (million dollars)

OTHER MATERIALS

Figure 7-1 | Key Trends for Other Residential Insulation Materials

HOUSING TYPE

Figure 8-1 | Key Single-Family, Multifamily, & Manufactured Housing Insulation Trends

NEW & RETROFIT INSULATION MARKETS

Figure 9-1 | Key Trends in New Housing & Retrofit Insulation Markets

Figure 9-2 | New Housing Insulation Demand Share by Material, 2007 - 2022 (million dollars)

Figure 9-3 | Retrofit Insulation Demand Versus Residential Improvement & Repair Spending, 2007 - 2022

AREA OF RESIDENTIAL BUILDING INSULATION TRENDS

Figure 10-1 | Key Insulation Trends by Area of Residential Building

REGIONS

Figure 11-1 | Key Regional Trends in Residential Insulation Demand

Figure 11-2 | Regional Residential Insulation Demand Shares, 2017 (million dollars)

Figure 11-3 | Northeast: Residential Insulation Indicators & Market Position, 2017

Figure 11-4 | Midwest: Residential Insulation Indicators & Market Position, 2017

Figure 11-5 | South: Residential Insulation Indicators & Market Position, 2017

Figure 11-6 | West: Residential Insulation Indicators & Market Position, 2017

INDUSTRY STRUCTURE

Figure 12-1 | Residential Insulation Market Share, 2017 (billion dollars)

Figure 12-2 | Leading US Residential Insulation Supplier, 2017

Figure 12-3 | Second Leading US Residential Insulation Supplier, 2017

Figure 12-4 | Third Leading US Residential Insulation Supplier, 2017

Figure 12-5 | Fourth Leading US Residential Insulation Supplier, 2017

APPENDIX

Figure 13-1 | Annual Growth in Real GDP, 2000 - 2017, Compared to 1980 - 2005 Average (percent)

Figure 13-2 | Annual Population Growth, 2002 - 2017 (percent)

Figure 13-3 | New Housing Square Footage by Housing Type, 2002 - 2017

Figure 13-4 | Housing Stock by Year of Construction, 2017 (million units)


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